Author: PEAK Business Consultancy Services | Category: NRI Income Tax Filing in India
As a Non-Resident Indian (NRI), filing your Income Tax Return (ITR) in India can seem complex—especially if you have income from multiple sources like rent, bank interest, or capital gains. But with proper planning, documentation, and guidance, the process can be smooth and stress-free.
In this detailed guide, we explain how NRIs can file their ITRs in India accurately, what income is taxable, applicable forms, required documents, and how our experts at OurTaxPartner.com can make the process seamless for you.
1. Who Qualifies as an NRI?
According to Indian tax laws, an individual is considered a Non-Resident Indian (NRI) if:
- They were not present in India for 182 days or more in a financial year, or
- They were not in India for 60 days or more during the financial year and not for 365 days or more in the preceding 4 years.
NRIs are taxed only on income earned or accrued in India—not on foreign income.
2. Is ITR Filing Mandatory for NRIs?
Yes, NRIs must file ITR in India if:
- Total income earned in India exceeds ₹2.5 lakh during the financial year.
- They want to claim a refund of TDS deducted on Indian income.
- They wish to carry forward capital losses.
- They have assets or financial interests in India that need disclosure.
Tip: Even if not mandatory, filing an ITR helps build a clean tax record. Our experts make ITR filing for NRIs easy and error-free.
3. What Types of Income Are Taxable in India for NRIs?
- Interest from NRO accounts
- Rental income from property in India
- Capital gains from sale of assets in India (property, shares, mutual funds)
- Dividends from Indian companies (taxable in hands of shareholder)
- Income from business or profession operated from India
Note: Interest earned from NRE and FCNR accounts is tax-exempt, provided the NRI status is valid.
4. Which ITR Form Should NRIs Use?
- ITR-2: For NRIs with income from rent, capital gains, interest, or other sources (not from business or profession)
- ITR-3: If the NRI has income from a business or profession in India
Pro Tip: Our team ensures the right form is filed with all income and disclosures correctly included.
5. Documents Required for NRI ITR Filing
- PAN Card
- Passport and visa/employment details (for residential status proof)
- Form 26AS and AIS (TDS and reported income)
- Bank statements (NRO/NRE accounts)
- Property rental agreements and municipal tax receipts
- Capital gains statements for property/shares/mutual funds
- Foreign Tax Credit (FTC) documents if tax is paid abroad
6. TDS for NRIs – Can You Claim a Refund?
NRIs are often subject to high TDS rates:
- 30% TDS on NRO interest
- 20% TDS on property rent payments (Section 195)
- Capital gains taxed as per slab or at 20% (LTCG with indexation)
If the actual tax liability is less, NRIs can claim refunds by filing an ITR. We help maximize refunds and ensure quick processing.
7. Double Taxation Avoidance Agreement (DTAA) Benefits
India has DTAA with over 85 countries. If your income is taxed both in India and abroad, you may be able to claim a credit for taxes paid outside India by filing Form 67.
Note: Claiming FTC or DTAA relief requires timely filing and specific documentation. Our team can help prepare the necessary schedules.
8. How to File ITR Online from Abroad
- Gather your Indian income proofs and TDS details.
- Register/login at the Income Tax e-filing portal.
- Select the appropriate ITR form (usually ITR-2).
- Fill details or upload JSON using offline utility.
- Claim foreign tax credit and deductions (if applicable).
- Submit and e-verify via Aadhaar, net banking, or DSC.
Don’t have time? Let us file your NRI return end-to-end, securely and remotely.
9. Common Mistakes NRIs Should Avoid
- Filing wrong ITR form (e.g., ITR-1, which is not applicable for NRIs)
- Not declaring all Indian income sources
- Skipping disclosure of foreign assets (if required)
- Missing Form 67 for foreign tax credit claims
- Using Aadhaar-linked verification when not available
Avoid rejections or notices—hire our experts for accurate NRI filings.
10. Why Choose OurTaxPartner.com for NRI ITR Filing?
- 100% online filing from anywhere in the world
- Support for rental, capital gains, and investment income
- DTAA and FTC claim preparation (Form 67 assistance)
- Quick refund tracking and post-filing support
- Affordable, professional tax filing plans for NRIs
Click here to get started with hassle-free NRI ITR filing
Conclusion
Being an NRI doesn’t exempt you from your Indian tax obligations. In fact, it makes accurate and timely tax filing even more important due to additional disclosures, foreign income rules, and DTAA implications.
Whether you earn rental income, capital gains, or just interest from NRO accounts, let PEAK Business Consultancy Services handle your ITR filing from start to finish.
Need assistance with NRI tax filing in India? Visit www.ourtaxpartner.com/filing-service/income-tax-efiling and connect with our certified consultants today.
